Alcohol & Tobacco Tax Annual Report

Transcription

1 Alcohol & Tobacco Tax Annual Report Fiscal Year 2014 Comptroller of Maryland

2 To the General Assembly and the Governor of Maryland: I am pleased to present the annual report of the Alcohol and Tobacco Tax Bureau of the Revenue Administration Division for Fiscal Year 2014 as provided in Article 2B, , of the Annotated Code of Maryland. This report furnishes general information and data about the administration and collection of tax revenue, licensure and regulation, and other-related items, including consumption and local alcoholic beverage statistics. If you need further information, please contact the Revenue Administration Division at , or me, in Annapolis, and we will be happy to help you. Sincerely, Comptroller of Maryland

3 Table of Contents I. Introduction II. III. IV. Revenues State Gross Revenue: Gross Revenue Net of Refunds Alcoholic Beverages Revenue Tobacco Revenue State Revenue: Licenses State Revenue: Alcohol Permits Sales & Consumption Per Capita Consumption: Alcoholic Beverages 17 Per Capita Tax Dollars & Consumption Alcoholic Beverages and Cigarettes Wholesale Alcoholic Beverage Sales and Cigarette Sales Maryland Winery Gallonage Sales Maryland Brewery Gallonage Sales Administrative & Enforcement Summary of Activities V. Local Jurisdictions: Retail Licenses, Revenue, and Statistics Bulk Transfer Permits Area & Population Chart 24 State of Maryland: County Restrictions Local Revenue: Liquor Boards & Dispensaries 26 Retail Licenses Issued: Summary Retail Licenses Issued: Local Liquor Boards Retail License Violations Retail License Information: Locations Retail License Issuing Authorities Liquor Control Boards & Dispensary Locations 35 Clerks of the Court

4 Introduction The Revenue Administration Division of the Comptroller of Maryland is responsible for collecting the alcoholic beverages tax and tobacco tax, and the Field Enforcement Division is responsible for regulation and enforcement of the State s alcoholic beverages and tobacco tax laws. This annual report provides data and statistics related to both the tax collection function of the Revenue Administration Division and the regulatory function of the Field Enforcement Division. All information in this report, including but not limited to revenue, licensure, and other regulatory activities are for fiscal year 2014: July 1, 2013 through June 30, Taxes The Maryland Alcohol Beverages Tax is imposed on each gallon at the following rates: Distilled Spirits * $ 1.50 Wine $ 0.40 Beer ** & Hard Cider $ 0.09 (* If distilled spirits contains a percentage of alcohol greater than 100 proof, or 50% alcohol, an additional tax for each 1 proof over 100 proof is 1.5 cents for each gallon. ** Flavored Malt Beverages (FMBs) are taxed at the same rate as beer) Local jurisdictions are prohibited from imposing an alcohol tax. After paying refunds and the administrative costs of the Comptroller, alcohol beverage taxes are distributed to the General Fund of the State. The Maryland Tobacco Tax is imposed on cigarettes and other tobacco products. Local jurisdictions are prohibited from imposing a tobacco tax on cigarettes. In addition to the $ 2.00 tax on a 20-cigarette pack, there is an additional $.10 cent tax for each cigarette in a package of more than 20 cigarettes, and a $ 0.10 cent tax for each cigarette in a package of free sample cigarettes. If the cigarette pack has 10 or fewer cigarettes, the tax is $ 1.00 for each pack. The tax rate for OTP is a percentage of the wholesale price, which means the price for which a wholesaler buys other tobacco products, exclusive of any discount, trade allowance, rebate, or other reduction. The tax rate for OTP is 15% of the wholesale price, which means the price for which a wholesaler buys other tobacco products, exclusive of any discount, trade allowance, rebate, or other reduction. Tobacco tax revenues are used to pay for refunds, and the Comptroller s administration costs with the balance distributed to the General Fund of the State. Revenue Total net receipts from alcoholic beverages and tobacco taxes, license and permit fees, and miscellaneous income for fiscal year 2014 was $ 434,890,962. Compared to fiscal year 2013, fiscal year 2014 tax revenues indicate the following changes: 1.9% increase in distilled spirits; a 0.5% decrease in wine; and a 3.6% decrease in beer with an overall decrease of % in alcoholic beverages tax collections. The net receipt from the sales of cigarette tax stamps in the amount of $ 368,390,044 reflects a 2.9% decrease from fiscal year The net receipt from Other Tobacco Products tobacco tax is $ 33,962,915, a decrease of 0.6% from fiscal year Other Tobacco Products include chewing tobacco, moist snuff, pipe tobacco, cigars, and roll-your-own tobacco. Compared to alcoholic beverages tax revenues, tobacco taxes provided the largest percentage of net receipts at 84.7%. As a percentage of net tax revenue, distilled spirits accounted for 3.7%; wine: 1.4%; and beer: 2%. Other tobacco products tax accounted for 7.8% of the total tax revenues. The Comptroller issues alcoholic beverages manufacturer and wholesaler licenses, and various permits. Local liquor boards issue alcoholic beverages retail licenses. Cigarette manufacturer and wholesaler licenses are issued by the Comptroller. As of May 1, 2011, OTP in-state manufacturer licenses and OTP licenses for both in-state and out-of-state wholesalers have been issued by the Comptroller repealing the OTP registration system. The Clerks of the Court issue cigarette retail licenses; and as of May 1, 2011, OTP retailer licenses and tobacconist licenses. The tobacco license fees collected consist of cigarette manufacturer and wholesaler licenses issued by the Comptroller, and since May 1, 2011, license fees for other tobacco products manufacturer and wholesaler licenses. Alcohol and tobacco license fees collected by the Comptroller are paid to the General Fund. Cigarette license fees are to be used to enforce the Maryland Cigarette Sales Below Cost Act. Alcohol and Tobacco Legislation The Maryland General Assembly passed several legislative bills during the State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 1

5 2013 session related to alcohol and tobacco laws. A summary of the legislation is available at the Maryland General Assembly s website Legislative Session: Alcoholic Beverages STATEWIDE: (1) This bill allows the Comptroller to issue a brewing company an off-site permit to a Class 7 micro-brewery that produces less than 3,000 barrels per year or a Class 8 farm brewery subject to specified requirements. (2) The permit may be used to sell to a consumer up to 288 ounces of beer that has been produced by the permit holder for offpremises consumption. (3) The permit may also be used to sell beer at certain farmers markets and other events. 1. Senate Bill 546 House Bill 208 Alcoholic Beverages Refillable Containers (1) The identical bills standardize the requirements for all refillable containers authorized by local jurisdictions for use in the sale of draft beer and wine for offpremises consumption. (2) The bills rename a refillable container license as a refillable container permit to indicate that the authorization is secondary in nature and may be issued only to a person who already has an alcoholic beverages license. (3) The bills include a requirement that a refillable container be branded with an identifying mark of the seller of the container. (4) Baltimore, Carroll, Harford, Prince George s, and St. Mary s counties are added to the roster of counties which refillable container permits for beer may be issued. EFFECTIVE OCTOBER 1, Senate Bill 341 House Bill 1079 Alcoholic Beverages Refillable Containers (1) These identical bills authorize the Board of License Commissioners in Calvert County to issue refillable container permits. (2) A refillable container permit for wine may also be issued in Howard County. (3) The bills authorize the Comptroller to adopt standards for refillable containers, including containers originating from outside the State. 3. Senate Bill 226 Alcoholic Beverages Brewing Company Off-site Permit 4. House Bill 464 Alcoholic Beverages Retail Sale of Prepackaged Beer (1) This bill authorizes the holder of a Class 7 micro-brewery license to sell at retail to customers for consumption off the licensed premises prepackaged, non-refillable containers of the micro-brewery s own beer. 5. House Bill 337 Alcoholic Beverages Class 8 Obtaining a Class 7 License (1) This bill authorizes the holder of a Class 8 farm brewery license to obtain a Class 7 limited beer wholesaler s license. (2) This bill also removes the prohibition on the issuance of a license for the sale of alcoholic beverages for any place of business located within specified districts in Frederick County if the business is a holder of a Class 8 farm brewery license. State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 2 6. House Bill 356 Alcoholic Beverages Farm Breweries (1) This bill expands the eligibility for special festival licenses in Baltimore city as well as Baltimore, Carroll, Dorchester, Frederick, Garrett, St. Mary s and Wicomico counties to include holders of a Class 8 farm brewery license. (2) Moreover, the bill specifies that, in Garrett County, a holder of a Class 8 farm brewery license may open on Sundays during specified hours, in a precinct in an

6 election district where the voters have voted to allow for Sunday sales. (3) A Class 8 farm brewery license is authorized to enter into a written temporary delivery agreement with a distributor for the delivery and return of beer to a beer festival or a wine and beer festival, provided the festival is located within a sales territory for which the holder does have a franchise with a distributor under the Beer Franchise Fair Dealing Act. 7. House Bill 600 Alcoholic Beverages Farmer s Market Permit (1) This bill reestablishes the Comptroller s authority to issue a farmers market permit to a holder of a license other than a Class 4 limited winery license if the license was issued by the local licensing board of the jurisdiction in which the farmers market will be held. 8. Senate Bill 75 House Bill 359 Alcoholic Beverages Maximum Alcohol Content (1) The identical bills prohibit the sale of an alcoholic beverage with alcohol content by volume of 95% (190 proof) or more. 10. House Bill 4 Alcoholic Beverages Prohibition of Vaportinis and Similar Devices LOCAL: (1) This bill expands the definition of an alcohol without liquid (AWOL) machine to include a Vaportini, or any similar device, that mixes an alcoholic product with pure oxygen or other gas to produce a vaporized product that can be inhaled. (2) The bill expands an existing prohibition related to the use, possession, purchase, transfer or sale of AWOL machines to apply to Vaportinis. 1. Senate Bill 1015 House Bill 591 Alcoholic Beverages Anne Arundel County Tasting Licenses (1) These identical bills create a Class BWLT beer, wine and liquor (on-premises) tasting license in Anne Arundel County. A Class BWLT license may only be issued to a holder of a Class A beer, wine and liquor (offpremises) license. (2) The eligibility requirements for a Class BWT beer and wine (on premises) tasting license are limited so that the license may only be issued to a holder of a Class A beer, wine, and liquor (off-premises) license or a Class A beer and wine (off-premises) license. (3) The annual fee for a Class BWT license is increased from $50 to $150 and a $500 fee for a Class BWLT license is established. 9. Senate Bill 161 House Bill 261 Alcoholic Beverages Hard Cider Definition (1) These identical bills codify current practice by expanding the definition of hard cider to include a beverage deprived primary from pears, or pear concentrate and water, containing at least one-half of 1% and less than 7% of alcohol by volume. EFFECTIVE OCTOBER 1, State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 3 2. Senate Bill 846 House Bill 831 Alcoholic Beverages Baltimore City Baltimore City Alcoholic Beverages Act of 2014 (1) These bills provide for the appointment of three regular members and one alternate member to the Baltimore City Board of Liquor Commissioners by the Governor. (2) Each appointee must be a resident and voter of Baltimore City, with high character and integrity and of recognized business capacity.

7 (3) The bills repeal the requirement that the executive secretary or the deputy executive secretary must be a member of the Maryland Bar. (4) Furthermore, significant changes are made to provisions governing the issuance, transfer, and renewal of licenses including changes to the collection and allocation of board revenues. EFFECTIVE UPON ENACTMENT. 5. Senate Bill 1103 Alcoholic Beverages Baltimore City Class C licenses (1) Authorizes the board to issue a Class C beer, wine, and liquor license in Ward 5, Precinct 1 of the 44th Alcoholic Beverages District. 3. Senate Bill 458 House Bill 953 Alcoholic Beverages Baltimore City Microbreweries (1) These identical bills add Baltimore City to the list of locations in which a holder of a certain Class D alcoholic beverages license may be issued a Class 7 micro-brewery (on and off sale) license. (2) The bill authorizes the license holder to brew at two locations using the same license if the Comptroller determines that the second location is necessary because of insufficient space at the existing location. (3) Additionally, the bill prohibits the holder of the license from serving or selling beer at the second brewing location and authorizes the license holder to obtain a Class 2 rectifying license for the premises at the two locations. 4. Senate Bill 793 Alcoholic Beverages Baltimore City Class B Licenses (1) This bill authorizes the board to issue or allow the transfer of up to two Class B beer, wine, and liquor licenses into the area of 829 through 919 E. Fort Avenue within the 46th Legislative District only if the board has executed a memorandum of understanding between the community associations in Riverside and Locust Point regarding the nature of the proposed establishment and enforces the memorandum against any license holder seeking to renew or transfer the license. (2) The cumulative number of licenses that may be issued or transferred is two. (3) The board may not allow such a license to be transferred out of the area within the 46 th Legislative District into any other area of Ward 24, Precinct Senate Bill 546 House Bill 208 Alcoholic Beverages Baltimore County Refillable Containers (1) These identical bills standardize the requirements for alcoholic beverages refillable containers used in the sale of draft beer, craft beer, or wine for off premises consumption. (2) This bill authorizes the board to issue a refillable container permit to sell draft beer in refillable containers for consumption off the licensed premises to a holder of a Class A, Class B, or Class D license. EFFECTIVE OCTOBER 1, Senate Bill 496 Alcoholic Beverages Calvert County - Organizational Licenses (1) This bill authorizes the board to issue an organizational license to a fraternal organization, volunteer fire department, or volunteer rescue squad for use on the premises that the organization, fire department, or rescue squad owns or regularly uses to hold functions. (2) A licensee may sell beer, wine, and liquor by the drink for consumption. (3) The annual fee is $500. State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 4 8. Senate Bill 495 Alcoholic Beverages Calvert County Premises Inspection and Penalties (1) This bill authorizes the board, or its designee to inspect each licensed premises in the

8 county every six months, rather than the previous rule of inspection every three months. (2) The board may suspend an alcoholic beverages license for any alcoholic beverages violation and impose a fine of up to $1,000 for a violation of State law or $500 for a violation of the rules and regulations of the board. 9. Senate Bill 548 Alcoholic Beverages Calvert County Special Event Permit (1) This bill authorizes the board to issue a Special Event (festival) beer, wine, and liquor (on-sale) permit to a Class B or Class D license holder. (2) The applicant must demonstrate a reasonable expectation of attracting at least 500 patrons to the special event and commit to provide additional security personnel at the event for traffic, parking, and patrol purposes as required. (3) The permit fee is $ Senate Bill 340 Alcoholic Beverages Calvert County Unlicensed Establishments (1) This bill prohibits an establishment that is not licensed by the board from giving, serving, dispensing, keeping, or allowing to be consumed on its premises, or on premises under its control or possession, any alcoholic beverages. (2) However, a volunteer fire department, rescue squad, or emergency medical services organization may conduct no more than four events annually on their premises or premises under their control or possession to which individuals may bring and consume alcoholic beverages. (3) A violator is guilty of a misdemeanor and subject to maximum penalties of two years imprisonment and/or a fine of $10, Senate Bill 341 House Bill 1079 Alcoholic Beverages Calvert County Refillable Containers (1) Authorizes the board to issue a refillable container permit to a holder of a Class A, Class B, or Class D alcoholic beverages license. (2) A refillable container permit entitles the holder to sell draft beer for consumption off the licensed premises in a refillable container with a capacity of not less than 32 ounces and not more than 128 ounces. (3) A refillable container permit applicant must complete the form that the board provides and pay an annual permit fee of $50 if the applicant already has an off-sale privilege or $500 if the applicant does not have an offsale privilege. 12. Senate Bill 764 Alcoholic Beverages Caroline County Volunteer Fire Companies (1) Authorizes Caroline County volunteer fire companies to store alcoholic beverages on the licensed premises in between licensed events if the alcoholic beverages are in a specially identified locked and secured location and are not sold or consumed except during licensed event hours for licensed event purposes. (2) A license holder who violates this provision is subject to a $100 fine for the first offense, and $500 for subsequent offenses and denial of future requests for a license. 13. Senate Bill 560 House Bill 156 Alcoholic Beverages Carroll County License Fee Increases (1) This bill authorizes phase in increases in license fees for alcoholic beverages in Carroll County. (2) The fee increases are phased in from fiscal year 2015 through State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 5

9 14. House Bill 300 Alcoholic Beverages Charles County Alcoholic Beverage Licenses (1) This bill increases the minimum distance restriction in Charles County so that a license to sell alcoholic beverages for consumption off premises may not be granted in any building which is within 1,000 feet, rather than 500 feet, of the property of any school. (2) The existing 500-foot restriction remains with respect to a license to sell alcoholic beverages for consumption on premises. EFFECTIVE UPON ENACTMENT. 15. House Bill 248 Alcoholic Beverages Charles County Beer, Wine, and Liquor Licenses (1) This bill increases various Class B alcoholic beverages licenses fees in Charles County by restructuring the county s existing Class B alcoholic beverages licensing scheme and instituting extra fees for additional license privileges. (2) The bill also renames a Class BLX license to a Class B-BLX (luxury restaurant) on-sale beer, wine and liquor license. 16. House Bill 419 Alcoholic Beverages Charles County Population Quota in Sixth Election District (1) This bill specifies that the board may use the resident population figures of the last federal census when determining the number of offsale alcoholic beverages licenses that may be issued within each election district. (2) Additionally, the bill authorizes the board to issue in the 6 th election district one alcoholic beverages license with an off-sale privilege per every unit of 2,700 people based on the resident population figures of the last federal census. (1) These identical bills authorize Class B (offsale) beer and light wine licensees to sell beer and light wine on Sunday from 10 a.m. to midnight. (2) Moreover, the bills expand the hours for sale of beer and light wine under a Class B (onsale) beer and light wine license on Sunday from 10 a.m. to midnight. (3) If Christmas Eve or New Year s Eve is on a Sunday, beer and light wine may be sold both on and off premises from 10 a.m. to 2 a.m. the following day. 18. Senate Bill 619 House Bill 433 Alcoholic Beverages Frederick County Alcoholic Beverages Act of 2014 (1) These bills authorize the Frederick County Board of License Commissioners to issue a license for the sale of beer, wine, and liquor for consumption on the premises only to an organization located in the county that is a bona fide religious, fraternal, civic, war veterans, or patriotic organization. (2) All net proceeds from the sale of alcoholic beverages must be used solely for charitable purposes or to further the purposes of the organization. (3) The bills also allow all of the bottles in a wine preservation system that the board approves to be opened at a wine sampling or tasting event in the county. (4) No more than six other bottles of wine may be opened by a holder of a solicitor s permit, the holder of the beer and wine sampling or tasting license, or an employee of the license holder. (5) A single individual may not consume more than six ounces of wine from all brands in a single day. 19. Senate Bill 618 House Bill 472 Alcoholic Beverages Frederick County Country Inn Licenses 17. Senate Bill 60 House Bill 167 Alcoholic Beverages Dorchester County Sunday Sales State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 6 (1) These identical bills authorize the board to issue a Class B-CI (country inn) on-sale beer, wine, and liquor license for the use of an establishment that meets specified

10 requirements in the Burkittsville (twentysecond) election district. 20. House Bill 337 Alcoholic Beverages Frederick County Farm Breweries (1) Is a statewide bill that authorizes a holder of a Class 8 farm brewery license to obtain a Class 7 limited beer wholesaler s license. In Frederick County, the bill removes the prohibition on the issuance of a license for the sale of alcoholic beverages for any place of business located within the following election districts if the business is a holder of a Class 8 farm brewery license: Catoctin (6th), Hauvers (10th), Jackson (16th); Linganore (19th), and Ballenger (23rd). 21. Senate Bill 420 Alcoholic Beverages Garrett County Beer Festival Licenses (1) This bill alters beer festival licenses in Garrett County so that the holder of a beer festival license may display and sell at retail beer that was manufactured and processed in any state. (2) This bill also adds a Class 8 farm brewery license holder to the list of applicants eligible for a beer festival license in Garrett County. 22. House Bill 1097 Alcoholic Beverages Garrett County Qualified Voters for Sunday Sales (1) The Garrett County Board of License Commissioners must provide the Department of Legislative Services, by December 1, 2014, a complete list of election districts and precincts in Garrett County in which Sunday sales of alcoholic beverages are authorized. (2) Those districts and precincts must then be listed in a specified location in the Annotated Code of Maryland. 23. House Bill 836 Alcoholic Beverages Class A2 Light Wine Licenses (1) This bill repeals the ability of the board to issue Class A2 Light Wine licenses since it is no longer needed and its privileges are available under the State Class 4 Limited Winery License issued by the Comptroller. 24. Senate Bill 552 Alcoholic Beverages Harford County - Class H-CC Beer, Wine, and Liquor License (1) This bill eliminates the requirements that a Class H-CC (corporate club/conference center) license only be used by a private club of at least 25 members who pay an annual membership fee and may not be used for any purpose other than for the benefit of the club. (2) A Class H-CC license may keep for sale and sell beer, wine, and liquor. (3) The holder of a Class H-CC license may hold no more than four, instead of one, selfsponsored events per year in the banquet, conference, or meeting room. 25. House Bill 1170 Alcoholic Beverages Harford County Residency Requirements (1) This bill specifies that an applicant for a Class B restaurant or Class D tavern license who is acting on behalf of a business entity, must be a resident of the State for at least one year before filing the application, must remain a resident as long as the license is in effect, and must reside within a 100-mile radius of the Town of Bel Air. (2) Furthermore, one of the applicants, regardless of the type of business entity, must be a responsible operator of the licensed establishment who has been a resident of the State for at least one year and remains a resident as long as the license is in effect and must reside within a 100 mile radius of the Town of Bel Air. State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 7

11 (3) A responsible operator must own at least 25% of the total business, except for an applicant for a Class B license. 26. Senate Bill 1112 Alcoholic Beverages Howard County Population Restrictions on Class A Licenses (1) This bill limits the number of Class A alcoholic beverage licenses of any type that can be issued by the board to one license for every 4,000 Howard County residents, as determined by the latest federal census. (2) However, the limitation does not apply to a license issued for use in an existing shopping center or a proposed shopping center development for which a building permit has been issued that contains 200,000 or more square feet of commercial retail space. 27. House Bill 1091 Alcoholic Beverages Howard County Beer Festivals (1) This bill authorizes the board to issue a special beer festival license to the holder of a current retail alcoholic beverages license issued in the State, a State Class 5 Brewery License, a State Class 7 micro-brewery license, or a State Class 8 farm brewery license. (2) The holder of a special beer festival license may display and sell at retail beer for consumption on or off the licensed premises on festival days and hours. (3) The license fee is $50 for a one- or two-day festival. (4) The board must approve one weekend at an unlicensed premises in Howard County for the special beer festival. wine tasting (BWT) license to a holder of a Class A beer and wine license or a Class A beer, wine, and liquor license. (2) Additionally, the inspector employed by the board may serve summonses and issue citations for specified alcohol related crimes in Kent County. (3) The BWT license allows the licensee to serve, for tasting purposes only, samples of up to two ounces of wine from a given brand and four ounces from all brands and up to two ounces of beer from a given brand and six ounces from all brands to any one person in a single day for on-premises consumption. (4) The annual BWT license fee is $ House Bill 137 Alcoholic Beverages Montgomery County Beauty Salon License (1) This bill authorizes the Board of License Commissioners to issue a special beauty salon beer and wine license to a holder of a beauty salon permit. (2) The annual fee for the license is $100. (3) The license authorizes the licensee to provide no more than five ounces of beer or wine by the glass for on-premises consumption by a beauty salon customer during specified cosmetology services and permitted fund raising events. (4) The license may not be transferred to another location. (5) Beer and wine may be provided during normal business hours but no later than 9 p.m. each night. 30. Senate Bill 305 House Bill 132 Alcoholic Beverages Montgomery County Beer Sales and Delivery to Retail Dealers 28. Senate Bill 49 House Bill 226 Alcoholic Beverages Kent County Kent County Alcoholic Beverages Act 2014 (1) These identical bills authorize the Board of License Commissioners to issue a beer or State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 8 (1) These bills authorize a holder of a Class 7 limited beer wholesaler s license or a nonresident brewery permit to sell or deliver its own beer to a county liquor dispensary, a restaurant, or any other retail dealer in Montgomery County. (2) These bills also authorize a county liquor dispensary, a restaurant, or any other retail dealer in Montgomery County to purchase beer directly from a holder of a Class 7

12 limited beer wholesaler s license or of a nonresident brewery permit. 31. Senate Bill 657 House Bill 463 Alcoholic Beverages Montgomery County Beer, Wine, and Liquor Licenses (1) These bills allow the board to issue a Class D beer, wine, and liquor licenses for onpremises consumption. The annual fee is $3,000. (2) The bills establish provisions relating to license requirements and inspections of licensed establishments. (3) The bills also extend the time of day that holders of a Class B-BWL and B-BWL (H-M) licenses may sell alcoholic beverages. (4) To obtain a Class D beer, wine, and liquor license, the owner must attest in a sworn statement that gross receipts from food sales in the establishment will be at least 40% of the total of all gross receipts. 32. Senate Bill 459 House Bill 269 Alcoholic Beverages Montgomery County Clubhouse/Lodge Licenses (1) The board may issue a Class B-BWL (Clubhouse/Lodge) license to the Executive Director of the Montgomery County Revenue Authority, or the Executive Director s designee, for use by a multi-use facility that accommodates a golf course, a restaurant, a clubhouse, a tasting bar, and the catering of events anywhere on the property. (2) The holder of this license is not required to be located in any specified geographic location and is not required to maintain any alcohol sales to food sales ratio. (3) The annual fee is $1, Senate Bill 311 House Bill 146 Alcoholic Beverages Montgomery County Community Performing Arts Facility Special BWL License (1) Under the bills, a community performing arts facility is any facility used for shows, live performances, theater productions, art classes, exhibits, visual art shows, weddings, banquets, and community related activities. (2) These bills allow the board to issue a Special BWL Community Performing Arts Facility alcoholic beverage license with an annual fee of $750. (3) To qualify for the license, the performing arts facility must have a capacity of at least 200 but no more than 1,499 people. (4) The licensee may sell alcoholic beverages by the drink for consumption on the premises during the hours of 10 a.m. to 2 a.m. the following day. (5) Food must be served or provided during the hours in which alcoholic beverages are sold or consumed. 34. Senate Bill 298 House Bill 136 Alcoholic Beverages Montgomery County Beer Festivals (1) These bills authorize the county to conduct the Montgomery County Beer Festival through a festival organization to be selected by the county. (2) The festival is to be held no more than four weekends per year and is to be conducted under the supervision of the Montgomery County Department of Liquor Control. (3) The license fee is $30 per day. 35. Senate Bill 310 Alcoholic Beverages Montgomery County Microbrewery Licenses, Class D Beer, and Light Wine Licenses (1) This bill authorizes the holder of a Class D beer and light wine license in Montgomery County to be issued a Class 7 micro-brewery license by the Comptroller. 36. Senate Bill 300 House Bill 142 Alcoholic Beverages Montgomery State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 9

13 County Proportion of Food and Alcoholic Beverage Sales (1) These bills decrease, from 50 to 40%, the minimum ratio of food sales to food and alcoholic beverage sales combined that restaurants and hotels must maintain in order to obtain or renew a Class B beer, wine and liquor license in Montgomery County. 37. Senate Bill 302 House Bill 131 Alcoholic Beverages City of Takoma Park (1) These bills repeal the June 30, 2014 termination date of Chapter 390 of 2012, which provided an off-sale privilege for Class B beer and light wine licenses issued for hotels and restaurants in the City of Takoma Park. 38. House Bill 135 Alcoholic Beverages Town of Kensington 40. Senate Bill 692 House Bill 332 Alcoholic Beverages Washington County Restaurant Seating Capacity (1) These bills reduce the seating capacity in the definition of a restaurant in Washington County from 75 to 50 persons for a Class P alcoholic beverages (on-sale) license. (2) These bills also exclude Class P licenses from being factored in calculating Washington County s population ration quota for alcoholic beverage licenses. 41. Senate Bill 1079 Alcoholic Beverages Worcester County Class D License (1) This bill authorizes the board to issue a Class D beer, wine, and liquor license within the corporate limits of the towns of Berlin and Snow Hill. (1) This bill authorizes the board to issue a special B-K alcoholic beverage license to a restaurant located at the East side of Connecticut Avenue between Warner Street and Knowles Avenue in the Town of Kensington. (2) The holder of the license may not serve alcoholic beverages after 11 p.m. 39. Senate Bill 250 House Bill 287 Alcoholic Beverages Somerset County Class 7 Micro-Brewery License (1) These bills add Somerset County to the list of jurisdictions in which a Class 7 microbrewery license may be issued. (2) The license may be issued to a holder of a Class B beer, wine, and liquor (on-sale) license for use on the premises of a restaurant. State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 10

14 STATE GROSS REVENUE: (a) Alcoholic Beverages License Fees $12,206,227 (b) Tax on Distilled Spirits 827,419,061 (c) Manufacturer s Tax on Distilled Spirits 1,528,684 (d) Tax on Wine 190,638,995 (e) Tax on Beer 453,013,926 (f) Alcoholic Beverages Permit Fees 17,947,186 (g) Cigarette Tax 6,761,310,245 (h) Other Tobacco Products Tax 177,950,548 (i) Other Tobacco Products Licenses 63,425 Miscellaneous Revenue - Alcoholic Beverages Miscellaneous Revenue - Tobacco Tax 1,515,861 69,222,779 Total $8,512,816,937 (a) License fees are collected from manufacturers, wholesalers, railroads, steamboats and airline companies. (b) The distilled spirits and sparkling and fortified wine tax was created on December 5, 1933 at $1.10 per wine gallon not over 100 proof. The tax on distilled spirits increased to $1.25 per wine gallon on 100 proof or less on October 1, 1939, and increased to $1.50 per wine gallon on 100 proof or less on July 1, (c) The manufacturer s tax on distilled spirits began on April 1, 1936 at the rate of 5 cents per proof gallon. The rate decreased to 2 ½ cents per proof gallon on June 1, 1937, brandy and neutral spirits were exempt. This tax was repealed on September 30, (d) Prior to April 1, 1935, the tax levied on sparkling and fortified wines was the same rate as distilled spirits at $1.10 per gallon. As of May 17, 1935, the tax on distilled spirits; however, all wines of whatever alcoholic content were taxed at a rate of $ 0.20 cents per gallon. The wine tax rate increased to 40 cents per gallon on July 1, (e) The beer alcoholic beverages tax was created on April 1, 1936 at the rate of cents per gallon. The rate increased to 3 cents per gallon on October 1, 1938, and further increased to 9 cents per gallon on July 1, (f) Certain permit fees were established June 1, 1943 at an annual fee of $5.00 for each permit. As of June 1, 1959, permit fees of $50.00 established for: Public Storage, Public Transportation, Public Storage and Transportation, Nonresident Dealer, Import-Export, and Bulk Transfer. Permit fees of $25 established for: Individual Storage, Private Bulk Sales, and Non- Beverage (Commercial). Permit fees of $2.00 established for: Change of Domicile, Individual Transportation, and Vehicle Identification per vehicle. No permit fee for Non- Beverage eleemosynary or fuel-alcohol. Solicitor s Permit created on June 1, 1973; the Wine Exhibition Permit on July 1, 1985 ($50.00 fee); and the Charity Wine Auction Permit on July 1, 1986 ($ fee). Non-Resident Storage Permits created on July 1987 ($ fee). Alcohol Awareness Program Permit created on July 1, 1989 ($15.00 fee). Numerous license and permit fees increased effective May 1, Alcohol Awareness Instructor s Permit created on October 1, 1994 ($5.00 fee); Family Beer and Wine Facility Permit on June 1, 1996 ($ fee); Private Bulk Sales Permit on October 1, 1997 ($25.00 fee); Winery Special Event Permit on October 1, 2000 ($25.00 fee). Direct Wine Seller s Permit has been repealed, and replaced on July 1, 2011 by Direct Wine Shipper Permit ($200 fee) and Common Carrier Permit ($100 fee). Fee per vehicle for Vehicle Identification card increased from $2.00 to $10.00 on June 1, Fee for a Charity Wine Auction permit reduced $ to $10.00 on June 1, Non-resident winery permit created on April 25, 2006 ($50.00 fee). Brewery Special Event Permit created on June 1, 2008 ($25.00 fee). Resident Dealer Permit created on July 1, 2009 ($200 fee), and the fees for a Public Storage and Transportation Permit, Nonresident Dealer s Permit, and a Bulk Transfer Permit increased to $200. (g) Tobacco tax on cigarettes effective July 1, 1958, at rate of 3 cents per pack. Tax increased to 6 cents per pack on July 1, 1961; 10 cents per pack on June 1, 1975; 13 cents per pack on July 1, 1980; 16 cents per pack on June 1, 1991; 36 cents per pack on May 1, 1992; 66 cents per pack on July 1, 1999; $1.00 per pack on June 1, 2002; and $2.00 per pack on January 1, Prior to 1961, cigarette tax was imposed by certain counties and Baltimore City. (h) Tobacco tax on Other Tobacco Products became effective on July 1, 2000 at a rate of 15% of the wholesale price. (i) Other Tobacco Products Licenses effective May 1, Annual OTP fees: In-state manufacturers: $25.00, all wholesalers: $250 (waived if have cigarette wholesaler license); storage warehouse: $ Note: The Alcoholic Beverages Division merged with the Cigarette Tax Unit in fiscal year Tobacco revenue begins in fiscal year State of Maryland - Alcohol and Tobacco Tax Annual Report 2014 Page 11

15 GROSS REVENUE NET OF REFUNDS % Of Gross Net Total Receipts Refunds Receipts Receipts Receipts: Spirits at $1.50 per wine gallon $ 16,131,020 $ 146 $ 16,130, % Wine at $.40 per gallon 6,105, ,104, % Beer at $.09 per gallon 8,751, ,370 8,572, % Cigarette Tax 370,507,391 2,117, ,390, % Other Tobacco Tax 33,964,268 1,352 33,962, % Alcoholic Beverage License Fees 429,963 1, , % Alcoholic Beverage Permit Fees 1,184, ,183, % Miscellaneous Alcoholic Beverages 50,950 1,000 49,950 Miscellaneous Tobacco Tax 55,595 5,151 50,444 Fines 2,200-2,200 Other Tobacco License Fees 14,800-14,800 SUBTOTAL $ 437,197,276 $ 2,306,314 $ 434,890, % Notes: Miscellaneous Alcoholic Beverages are Tax Application Fees, cash bonds, certified copies, service charges, sale of confiscated alcohol beverages and seized cash. Other Tobacco License Fees: manufacturers, wholesalers, and storage warehouse. Fee waived for OTP wholesaler who has a cigarette wholesaler license. OTP licenses effective 5/1/2011. Cigarette license fees paid to special fund for cost of enforcing Cigarette Sales Below Cost Act. State of Maryland - Alcohol and Tobacco Tax Annual Report Page 12

16 ALCOHOLIC BEVERAGES REVENUE Distilled Spirits MONTH July $ 3,653 $ 5,103 $ 6, ,084 August 1,090,974 1,083,729 1,066,315 1,119,276 September 1,241,994 1,265,587 1,354,790 1,295,370 October 1,304,146 1,363,891 1,183,935 1,152,878 November 1,366,632 1,524,607 1,619,166 1,667,412 December 1,466,976 1,416,202 1,465,339 1,373,341 January 1,388,356 1,480,282 1,450,681 1,661,990 February 830, , , ,096 March 1,100,065 1,210,285 1,315,482 1,272,759 April 1,375,343 1,405,788 1,261,215 1,206,482 May 1,369,325 1,319,170 1,317,639 1,315,040 June 3,036,738 3,011,570 2,841,669 2,970,146 TOTAL $ 15,574,948 $ 15,970,480 $ 15,836,330 $ 16,130,874 % change from prior year 5.9% 2.5% -0.8% 2% Wine MONTH July $ 18,148 $ 26,617 $ 33,679 20,638 August 406, , , ,537 September 434, , , ,229 October 461, , , ,111 November 485, , , ,784 December 553, , , ,512 January 603, , , ,156 February 373, , , ,675 March 467, , , ,571 April 528, , , ,162 May 500, , , ,370 June 963,936 1,025,659 1,037, ,007 TOTAL $ 5,796,304 $ 6,008,709 $ 6,135,598 $ 6,104,752 % change from prior year 8.0% 3.7% 2.1% -0.5% Beer MONTH July $ 344,561 $ 65,246 $ 65,583 62,131 August 567, , , ,931 September 902, , , ,776 October 769, , , ,031 November 711, , , ,841 December 659, , , ,989 January 631, , , ,211 February 619, , , ,706 March 618, , , ,019 April 754, , , ,273 May 757, , , ,189 June 1,771,766 1,662,114 1,587,442 1,528,252 TOTAL $ 9,107,481 $ 9,030,310 $ 8,895,022 $ 8,572,349 % change from prior year -1.4% -0.8% -1.5% -3.6% State of Maryland - Alcohol and Tobacco Tax Annual Report Page 13

17 TOBACCO REVENUE Cigarettes MONTH July $ 10,552,294 $ 8,776,820 $ 8,836,652 7,846,610 August 35,121,420 38,385,802 33,231,779 31,477,510 September 35,870,535 35,357,167 35,351,427 32,041,438 October 32,206,063 35,833,769 29,693,822 32,358,081 November 34,560,962 30,621,552 34,284,437 34,633,119 December 33,096,918 33,523,746 31,585,402 29,765,322 January 27,328,588 29,287,144 30,010,392 27,051,208 February 30,215,600 27,722,118 21,666,630 26,216,843 March 31,190,467 29,864,195 33,494,362 28,233,800 April 30,464,397 33,683,405 30,517,959 34,224,275 May 33,112,054 32,948,361 31,241,965 31,723,265 June 61,539,499 61,699,558 59,397,317 52,818,573 TOTAL $ 395,258,797 $ 397,703,637 $ 379,312,145 $ 368,390,044 % change from prior year 0.2% 0.6% -4.6% -2.9% Other Tobacco Products MONTH July $ 326,462 $ 241,261 $ 364, ,432 August 1,000, ,065 2,831,775 2,476,152 September 983, ,523 3,297,503 2,776,020 October 1,211,352 1,275,966 3,139,577 3,422,421 November 916, ,704 2,826, December 884,507 1,111,746 2,924, January 1,159,359 1,106,513 3,086, February 759, ,625 2,536, March 1,058, ,297 2,035, April 1,225,444 1,242,245 3,578,334 2,935,713 May 923, ,644 2,434,011 2,742,944 June 2,054,847 2,130,200 5,098,793 5,933,562 TOTAL $ 12,504,162 $ 12,803,788 $ 34,153,510 $ 33,962,915 % change from prior year 13.9% 2.4% 166.7% -0.6% State of Maryland - Alcohol and Tobacco Tax Annual Report Page 14

18 STATE REVENUE - LICENSES Licenses Issued Revenue FY2014 Annual Fee Collected Total Alcohol License Fees: 49 Application $ 200 $ 9, Filing Fee 30 15, $ 24,950 Manufacturer's Licenses: 20 Distillery (Cost Varies) 16, Rectifying (Cost Varies) 27,150 3 Winery (Cost Varies) 2, Limited Winery (Cost Varies) 13, Brewery (Cost Varies) 25,875 2 Pub-Brewery (Cost Varies) 1, Micro-Brewery (Cost Varies) 12,750 5 Farm Brewery (Cost Varies) $ 99,878 Wholesaler's Licenses 55 Beer, Wine and Liquor (Cost Varies) 103, Wine and Liquor (Cost Varies) 39, Beer and Wine (Cost Varies) 15,625 9 Beer (Cost Varies) 11, Wine (Cost Varies) 28, Limited Winery (Cost Varies) 2, Limited Beer (Cost Varies) 1, ,110 Railroad Licenses: 2 Beer, Wine and Liquor $ Steamboat Licenses: 50 Beer, Wine and Liquor (Cost Varies) 7,275 7, Airplane Licenses: 9 Beer, Wine and Liquor $ ,800 1,800 9 Caterer's Statewide: 64 Alcoholic Beverages (Cost Varies) 117, , Cigarette Licenses: 17 Manufacturer Wholesaler , Subwholesaler ,000 1 Vendor Storage Warehouse Application Fee (Cost Varies) 1, Filing Fee 30 2, ,300 Other Tobacco Products Licenses: 2 Manufacturer Wholesaler ,750 - Storage Warehouse , Total Licenses Issued $ 531,763 State of Maryland - Alcohol and Tobacco Tax Annual Report Page 15

19 STATE REVENUE - ALCOHOL PERMITS Permits Issued Revenue FY2014 Annual Fee Collected 397 Alcohol Awareness Instructor $ 5 $ 1, Alcohol Awareness Program Brewery Special Event Bulk Transfer , Change of Domicile Direct Wine Sellers ,200 2 Common Carrier Family Beer and Wine 400 2, Import and Export Individual Storage 50 3, Individual Transportation Non-Beverage ,480 Non-Resident Dealer , Non-Resident Storage 500 5, Non-Resident Winery 50 2,700 3 Private Bulk Sale Public Storage 75 1, Public Storage and Transportation 200 2, Public Transportation 75 36, Resident Dealer 200 3,200 2,802 Solicitor ,100 47,829 Vehicle Identification Cards ,285 6 Wine Aution Wine Exhibition Winery Offsite 100 5, Winery Festival 100 2,100 54,487 $ 1,183,920 State of Maryland - Alcohol and Tobacco Tax Annual Report Page 16

20 PER CAPITA CONSUMPTION ALCOHOL BEVERAGES Per Capita Gallons Per Capita Gallons Distilled Distilled County Spirits Wine Beer County Spirits Wine Beer Allegany Harford Anne Arundel Howard Baltimore Kent Baltimore City Montgomery Calvert Prince George's Caroline Queen Anne's Carroll St. Mary's Cecil Somerset Charles Talbot Dorchester Washington Frederick Wicomico Garrett Worcester Note: These figures are based on deliveries to retail licensees in the subdivisions by Maryland wholesaler licensees. State of Maryland - Alcohol and Tobacco Tax Annual Report Page 17

21 PER CAPITA TAX DOLLARS AND CONSUMPTION ALCOHOLIC BEVERAGES AND CIGARETTES Per Capita Tax Dollars (Based on Net Revenue) Distilled Spirits $ $ $ $ $ $ $ $ $ $ Wine $ Beer $ Total $ $ $ $ $ $ $ $ $ $ Cigarettes $ $ $ $ $ $ $ $ $ $ Per Capita Consumption in Gallons (Based on Deliveries to Retailers) Distilled Spirits Wine Beer * Total Cigarettes * Based on Maryland Department of Health population estimates. Sources: (1) U.S. Census Bureau, (2) Brief Economic Facts - Counties of Maryland and Baltimore City Maryland Department of Business & Economic Development State of Maryland - Alcohol and Tobacco Tax Annual Report Page 18

22 CIGARETTE SALES STATEWIDE Cigarettes (Packs of 20)* 187,379,700 Note: Sales by political subdivisions are not available for cigarettes WHOLESALE ALCOHOLIC BEVERAGES SALES Deliveries Statewide Total Gallons Deliveries by Political Subdivision Distilled Spirits 10,690,078 Wine 14,925,822 Beer 95,422,720 Distilled Spirits Wine Beer Allegany 131, ,171 1,727,883 Anne Arundel 1,268,693 2,217,596 11,152,555 Baltimore 1,617,006 2,261,807 12,677,447 Baltimore City 1,462,512 1,442,592 11,008,021 Calvert 173, ,593 1,825,667 Caroline 48,903 45, ,341 Carroll 271, ,595 3,142,559 Cecil 302, ,671 2,754,409 Charles 314, ,956 2,313,959 Dorchester 55,243 59, ,874 Frederick 420, ,161 4,249,462 Garrett 73,011 74, ,919 Harford 378, ,757 4,273,292 Howard 461, ,663 3,703,301 Kent 50,903 80, ,790 Montgomery 1,077,724 2,474,444 9,607,246 Prince George's 1,506,219 1,347,776 12,232,704 Queen Anne's 100, ,730 1,127,610 St. Mary's 167, ,078 2,008,369 Somerset 26,788 30, ,462 Talbot 92, , ,222 Washington 292, ,764 3,038,184 Wicomico 106, ,222 1,979,737 Worcester 288, ,842 2,869,707 TOTALS 10,690,078 14,925,822 95,422,720 State of Maryland - Alcohol and Tobacco Tax Annual Report Page 19

23 MARYLAND WINERY GALLONAGE SALES Fiscal Sales Sales to Sales to Sales % Year Retailers Winery Samples Wholesalers Out-of-State Other Total Change ,504 49,785 7,472 40,765 1, , % ,996 56,705 6,172 58, , ,802 62,497 4,919 72,328 1, , ,879 71,292 5,193 92, , ,748 84,295 6, ,123 1, , ,678 97,871 6, , , , ,735 9, ,867 1, , , ,329 9, ,998 5, , , ,148 12, ,294 2, , , ,748 15, ,182 2, ,842 (8.3) , ,918 16, ,554 4,508 1, , , ,707 19, ,507 4,211 2, , % State of Maryland - Alcohol and Tobacco Tax Annual Report Page 20